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As firms strive to grow their revenues and profits, they increasingly look to services as a source of competitive advantage. Traditional service process designs—where the service provider takes the lead and the customer is the recipient of the service product—have given way to a different paradigm in which the service provider and customer work together to co-create value. Oftentimes this involves the use of innovative technologies that support new ways of delivering services. Service providers who embrace this model are enhancing their competitive position through service processes that provide more value to customers and higher profits to the firm.

But what exactly are service providers and customers doing to unlock the ...

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